Target Date Solutions
Expanded choice to suit different plan needs
Selecting the right Qualified Default Investment Alternative (QDIA) option can be a complex process. It depends on a variety of factors:
Plan sponsor goals and objectives
Participant demographics
Risk appetite
We recognize that a single target-date solution cannot meet the needs of all plans, so we now bring you multiple options that feature variations in vehicle, glide path shape, and underlying investments.
Time-Tested Glide Path Philosophy
Features risk-aware glide path options that seek greater wealth accumulation over a full market cycle.
Active Alpha Potential
Incorporates active management to seek to mitigate risk and enhance returns.
Options Varied for Plan Needs
Allows selection based on plan-specific demographic and risk criteria.
Choice of Vehicles
Mutual Funds
Fund-of-fund portfolios designed to meet varying plan needs.
Commingled Investment Trusts
Multi-asset portfolios available exclusively through employer-sponsored retirement plans.
Investment Options
Mutual Funds
To suit the varying needs of different plans, we offer two mutual fund solutions that feature modest variations in equity allocations, glide path slope and underlying investments.
One Choice® Target Date Portfolios
Demonstrated strong risk-adjusted returns across a full market cycle.
As of 12/31/2022.
Seeks highest return for asset mix, moving to more defensive allocations near retirement
Places greater emphasis on managing downside risk, especially near retirement
45% equity allocation starting at age 65 seeks to sustain long retirements
The target date in a fund's name is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.
Each target-date fund seeks the highest total return consistent with American Century Investments' proprietary asset mix. Over time, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, the portfolio's allocation becomes more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and cash equivalents.
One Choice® Blend+ Portfolios
Blend pricing, plus the alpha potential of active management.
As of 12/31/2022.
Industry Average Glide Path Data as of 12/31/2022. Source: Fund prospectuses and websites, Morningstar.
Early/mid-career glide path seeks higher growth for more risk-tolerant populations
Flattening glide path near retirement seeks to reduce sequence-of-returns risk
Lower and later landing point recognizes a phased transition to full retirement
A One Choice Blend+ Target Date Portfolio's target date is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.
Each target-date One Choice Blend+ Target Date Portfolio seeks the highest total return consistent with American Century Investments' proprietary asset mix. Over time, the asset mix and weightings are adjusted to be more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and short-term investments. The portfolios reach their most conservative allocation approximately five years after the target date.
Commingled Investment Trusts
American Century® Retirement Date Trust
American Century® Retirement Date Hybrid Strategy
American Century® Retirement Readiness Strategy
Commingled Investment Trusts are available only to certain institutional accounts. For additional information, please contact your American Century Retirement Specialist at 1-800-345-6488.
The target date in a fund's name is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.
Each target-date fund seeks the highest total return consistent with American Century Investments' proprietary asset mix. Over time, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, the portfolio's allocation becomes more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and cash equivalents.
A One Choice Blend+ Target Date Portfolio's target date is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.
Each target-date One Choice Blend+ Target Date Portfolio seeks the highest total return consistent with American Century Investments' proprietary asset mix. Over time, the asset mix and weightings are adjusted to be more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and short-term investments. The portfolios reach their most conservative allocation approximately five years after the target date.
Alpha
Alpha is typically used to represent the value added or subtracted by active investment management strategies. It shows how an actively managed investment portfolio performed compared with the expected portfolio returns produced simply by benchmark volatility (beta) and market changes. A positive alpha shows that an investment manager has been able to capture more of the upside movement in the benchmark while softening the downswings. A negative alpha means that the manager's strategies have caught more benchmark downside than upside.
This information is for educational purposes only and is not intended as investment or tax advice.
Diversification does not assure a profit nor does it protect against loss of principal.
Fees are subject to change.